Analysis of the economic situation: An investment strategy for uncertain times

Video interview with Burkhard Varnholt: Fear is a poor investment strategy

The coronavirus continues to prevail over economic forecasts. However, one can only speculate on the further course of the pandemic and its economic consequences.  We interviewed Burkhard Varnholt, CIO of Swiss Universal Bank, to learn about a suitable investment strategy and new growth opportunities.

The economic impact of the coronavirus is temporary

The coronavirus pandemic has the financial markets firmly in its grip while investors scramble for answers. However, it's worth remembering that this phenomenon will not last. Unlike the financial crisis of 2008, the current bear market is up against a healthy financial system. In our interview, Burkhard Varnholt, CIO of Swiss Universal Bank, explains that it is a reflection of the fear on the markets, which is why we are seeing knee-jerk reactions. "What we need now is clear, credible political action," he says. As a financial expert, he knows that rapid de-escalation is key.

What should investors do? "In times like these, investors should think carefully before they act," Mr. Varnholt advises. Watch the video to see his recommended investment strategy.

Video interview with Burkhard Varnholt, CIO Swiss Universal Bank

Burkhard Varnholt explains in a video interview why investors should not respond to the spread of the coronavirus with fear. 

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A change of investment strategy is not the answer

In times like these, fortitude is important when it comes to investments. It is not useful to change investment strategies in response to turbulent economic conditions, warns Burkhard Varnholt, because "fear is a poor investment advisor." Rather, he believes that every crisis offers unexpected, yet very attractive, investment opportunities. In our video interview, he explains the components of a secure portfolio.

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